Trump Election Could Send 10-Year 100 Basis Points Higher: HSBC

The good news for income seekers is that the Donald Trump election will push up the US 10-year Treasury yield to 2.5% for the first quarter of 2017. The bad news is that this increase won’t last for long as higher rates will strangle US economic growth. That’s according to a flash research note put together by HSBC’s Global Head Of Fixed Income Research Steven Major published towards the end of last week.

Trump Election Could Send 10-Year To 2.5% But No Higher

Steven Major and team believe that following the Trump Election, ‘Trump Premium’ could add 100 basis points to 10-year yields in the near-term (at the time of writing Trump has already added approximately 34 basis points to the 10-year yield).